Although Ghana’s ambition to increase local ownership and participation in its mining industry is widely supported, the approach to achieve this goal is becoming questionable.
Many concerned Ghanaians insist that a country endowed with substantial mineral resources should have a stronger stake in the ownership, management and economic benefits generated from its natural wealth.
However, growing concerns about how mining concessions are being transferred, revoked and contested are raising questions about whether Ghana is pursuing this ambition in a manner that protects its long-term economic interests.
Data and policy analyst Alfred Appiah believes recent developments in the mining sector point to a worrying pattern that could undermine investor confidence, create uncertainty and ultimately deprive Ghanaians of the full benefits of their mineral resources.
In his assessment, the debate should not be about whether Ghanaians deserve greater ownership of their mineral resources, but rather the methods being used to achieve that objective.
For him, recent developments, including the transfer of Gold Fields’ Damang Mine to Engineers and Planners (E&P), the dispute between E&P and Azumah Resources’ foreign investors over the Black Volta Gold Project, and the controversies surrounding Adamus Resources and Northern Ashanti Mines, have heightened these concerns.
The danger of politically influenced mine ownership
Alfred Appiah believes that one of the biggest risks is allowing ownership and control of mining assets to become influenced by changes in political power.
He argues that mining concessions should not become subject to uncertainty whenever a new government assumes office, warning that such an approach could create the impression that political connections, rather than transparent rules and established legal processes, determine who controls the country’s mineral resources.
“We don’t want a situation where who owns a mine depends on who has political power. We don’t want ownership of mines to change every time government changes,” he cautioned.
He particularly points to the Adamus Resources controversy, arguing that the company’s experience under successive administrations illustrates the uncertainty that can arise when disputes over mining rights become entangled with political and administrative changes.
Military involvement and disputes raise further concerns
Another issue troubling the analyst is the reported involvement of military personnel in mining concession disputes.
He cites the Adamus and Northern Ashanti Mines situations, where disagreements over mining rights have been accompanied by military deployments and legal challenges.
His concern is that disputes over ownership and concession rights should be resolved through established legal and regulatory processes rather than actions on the ground that could pre-empt judicial determination.
The credibility of Ghana’s mining governance framework depends partly on whether investors can trust that their rights will be determined through predictable and lawful procedures.
The economic cost could be significant
Beyond individual mining companies, Alfred Appiah warns that these developments could have wider economic consequences.
Investors consider political and regulatory risks when deciding where to commit capital. When uncertainty increases, they may avoid a country altogether or demand more favourable investment terms to compensate for the additional risks. Either outcome could reduce the economic benefits Ghana receives from its mineral resources.
With gold accounting for approximately two-thirds of Ghana’s exports, he argues that the country cannot afford to introduce avoidable uncertainty into such a critical sector.
The analyst maintains that the participation must strengthen Ghana’s mining industry, not weaken the confidence, investment and economic opportunities it depends on.
The objective should be greater Ghanaian ownership under transparent, consistent and predictable rules, rather than a system where mining rights appear vulnerable to political transitions.
